Is a corporation considered marital property?

[Anonymous]

If one spouse establishes and rubs a successful corporation during a marriage, what financial claims does the other spouse have during divorce proceedings in terms of a said corporation? The firm is incorporated in Delaware. We reside in Maryland. Thank you!

[Anonymous]

Ask Jeff Bezos and his ex.

[Anonymous]

Anonymous wrote:Ask Jeff Bezos and his ex.

lol

yes it is. i'm a not bezos but am a divorced serial entrepreneur who got married too early (and too innocently) to have thought about a pre-nup.

[Anonymous]

If you are running a successful corporation, then why not spend a little bit of money to consulting a divorce attorney in your area?

[Anonymous]

Anonymous wrote:If you are running a successful corporation, then why not spend a little bit of money to consulting a divorce attorney in your area?

I assume the OP is the spouse of the successful entrepreneur.

Yah, usually this is marital.

[Anonymous]

The founder’s shares in the corporation are going to be considered marital property if the corporation was founded after you got married. MD is an equitable division state, so the court will consider various factors in dividing the ownership interest (may consider where the capital came from, what the other spouse’s contributions have been, etc.) - there isn’t a set formula or percentage split of each asset.

Assuming you’re the founder, you may be able to retain the shares in exchange for offsetting with other property of equal value. Like offering your spouse all the equity in the marital home or a larger share of your other assets. Obviously if the shares in corporation are your largest asset by far, this won’t work. I’d consult a family lawyer.

[Anonymous]

What if the business was incorporated before marriage?

[Anonymous]

Anonymous wrote:What if the business was incorporated before marriage?

i'm the serial entrepreneur who posted upthread. date of incorporation doesn't matter, they look at the gain in value of the asset (i.e. value of the business) during the marriage.

[Anonymous]

I live in Virginia and I did get 1/2 the value of the company.

[Anonymous]

It is marital property but if it’s private it’s a challenge to value and fighting will ensue because it’s so illiquid.